Mergers & Acquisitions

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Deal Overview

Buyer:
Banner Corporation
Actual Acquirer:
Banner Corporation
Target:
Skagit Bancorp, Inc.
Deal Type:
Bank & Thrift Company
Agreement Date:
7/25/2018
Announcement Date:
7/25/2018
Announced Deal Value ($ M):
193.20
Status:
Completed
Completion Date:
11/1/2018
Announced Deal Value Per Share ($ )
351.43

Consideration Breakout
Common Stock ($M) 179.7
Common Stock Issued 3,083,978

Deal Pricing Ratios

Announcement Completion
Price / Book (%) 241.5 225.1
Price / Tangible Book (%) 241.5 225.1
Price / Earnings (x) 22.7 21.2
Price / Deposits (%) 23.83 21.97
Price / Assets (%) 20.95 19.59
Tangible Book Premium/ Deposits (%) 15.60 13.44
Deal Terms
Description of Consideration

Banner Corp. exchanged 5.6664 shares of its common stock for each of the outstanding share of Skagit Bancorp Inc. Target financials are for Skagit Bank.

Accounting Method Acquisition
In-State Transaction? Yes
Merger of Equals? No
Geographic Expansion? In Market
Goodwill Generated ($ 000) NA
Estimated Cost Savings (%) 40.00
Estimated Cost Savings ($ 000) 10,124
Est. Restructuring Charges ($ 000) 14,000
Maximum Termination Fee ($ 000) 7,750
Minimum Termination Fee ($ 000) 0
Exchange Ratio (Common For Common) 5.666400
Exchange Ratio (Common For Preferred) NA
Exchange Ratio (Preferred For Common) NA
Exchange Ratio (Preferred For Preferred) NA
Lockup Agreement No
Strike Price ($ ) NA
% of Shares Outstanding NA
Shares Under Option NA
Core Deposit Intangibles ($ 000) 16,900
Deal Advisers
Financial Advisers
Party Advised Adviser Hired? Firm Name
Buyer Yes D.A. Davidson & Co.
Seller Yes Sandler O'Neill & Partners LP
Legal Counsel
Party Advised Adviser Hired? Firm Name
Buyer Yes Wachtell Lipton Rosen & Katz
Seller Yes Miller Nash Graham & Dunn LLP